User Account

All Pages

How much goodwill should Prairie report

Assignment Help Accounting Basics
Reference no: EM132594370

Question - Amie, Inc., has 155,000 shares of $1 par value stock outstanding. Prairie Corporation acquired 46,500 of Amie's shares on January 1, 2015, for $93,000 when Amie's net assets had a total fair value of $366,250. On July 1, 2018, Prairie bought an additional 93,000 shares of Amie from a single stockholder for $4 per share. Although Amie's shares were selling in the $3 range around July 1, 2018, Prairie forecasted that obtaining control of Amie would produce significant revenue synergies to justify the premium price paid. If Amie's identifiable net assets had a fair value of $492,250 at July 1, 2018, how much goodwill should Prairie report in its post-combination consolidated balance sheet?

Reference no: EM132594370

Questions Cloud

What is Zee Corporation break-even point in units : Zee Corporation manufactures nuts, bolts, and screws. All three products are profitable. What is Zee Corporation break-even point in units
What is the entry for month period ending June : A truck purchased for $20,000 has accumulated amortization of $6,000 on January, What's the entry for 6 month period ending June 30th
Determine the discount period for a promissory note : Question - Determine the discount period for a promissory note subject to the given terms. Loan Made on: May 18 and Length of Loan Days: 160
Determine the book value of the division assets : The income tax rate is 25%. Ziltech reported net income for the year of $5.1 million. Determine the book value of the division's assets on December 31, 2021
How much goodwill should Prairie report : Amie's identifiable net assets had a fair value of $492,250 at July 1, 2018, how much goodwill should Prairie report in its post-combination consolidated
How much will be reported for rent expense : If Cedar makes the appropriate adjusting entry, how much will be reported for rent expense on the income statement for the year ending December 31, 2021
Explain the significance of each calculation to management : The following information relates to Product Alpha. Selling price per unit $100. Explain the significance of each calculation to management
Make the journal entries to record the above transactions : On 1 July 2019, XYZ Ltd issued a prospectus inviting applications for 100 000 ordinary shares, Make the journal entries to record the above transactions
What is the realized gross profit on December : Assume that additional indirect franchise cost of 68,000 was also incurred. What is the realized gross profit on December 31, 2020

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd